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May retail sales drop
U.S. retail sales fell in May for a second month, prompting economists to cut forecasts for economic growth as limited job and income gains hold back consumers. The 0.2 percent decrease matched April's drop that was previously reported as a gain, Commerce Department figures showed. Sales excluding car dealerships slumped by the most in two years. April and May marked the first back-to-back declines in two years. — Bloomberg News
N.Y. considers limited fracking
New York Gov. Andrew Cuomo is considering a plan to allow natural-gas drilling by hydraulic fracturing in five counties near the Pennsylvania border, an administration official said. Permits would be issued only where residents support drilling, according to the official, who requested anonymity because the proposal isn't final. New York placed a moratorium on the process known as fracking in 2010 so state regulators could conduct an environmental review and develop rules. "No final decision has been made, and no decision will be made until the scientific review is complete and we have all the facts," a Cuomo spokesman said. Under the plan being discussed by the Cuomo administration, drilling in New York would be allowed only in Broome, Chemung, Chenango, Steuben and Tioga Counties, if local governments agree to it, the administration official said. — Bloomberg News
Caterpillar increases dividend
Caterpillar Inc. said Wednesday that its board had approved a 13 percent increase in the quarterly cash dividend. It marked the biggest percentage increase in the dividend since the financial crisis of 2008. The board of the Peoria, Ill., manufacturer agreed to raise the quarterly cash dividend by 6 cents to 52 cents a share. It will be payable on Aug. 20 to stockholders of record at the close of business on July 20. It was the biggest increase at Caterpillar since its board increased the quarterly dividend to 42 cents a share from 36 cents a share in August 2008. The company is the world's largest maker of construction and mining equipment. — AP
Target to raise its dividend
Target Corp. said Wednesday its board approved the increase of its quarterly dividend by 6 cents, or 20 percent, to 36 cents. The Minneapolis-based discount chain will pay the dividend on Sept. 10 to shareholders of record as of Aug. 15. Like most retailers, Target has had to try to find ways to draw cautious U.S. shoppers into stores amid a flood of mixed economic news. The job and housing markets are still shaky, but falling gas prices have given consumers hope. — AP
Asian consortium buying Saab
Swedish automaker Saab Automobile was rescued from insolvency Wednesday when an Asian consortium sealed a deal to buy the brand's main assets with the aim of making electric cars. The price tag for Saab's assets, which includes the main parts of the automobile manufacturing division, was not made public. The buyer, National Electric Vehicle Sweden AB, is owned 51 percent by Hong Kong-based National Modern Energy Holdings Ltd. and 49 percent by Japanese investment group Sun Investment L.L.C. It was recently formed to bid for Saab. — AP
Mortgage applications increase
Mortgage applications last week reached their highest level since May 2009, the Mortgage Bankers Association reported Wednesday. Refinancings were 19 percent higher than the week before, while applications for mortgages to purchase houses rose 13 percent, the group said. Refinancing accounted for 79 percent of all applications for mortgages. The average interest rate for 30-year fixed mortgages was 3.71 percent and 3.23 percent for 15-year loans. — Alan J. Heavens
Dell announces cost cuts
Computer maker Dell Inc. is planning to trim its expenses by more than $2 billion during the next three years as it tries into move into the more lucrative fields of technology. The bulk of the projected savings will come from Dell's sales group, where Dell plans to wring out about $800 million in expenses. As part of the belt-tightening, Dell expects to make fewer products. Management didn't identify which products might be jettisoned. Dell also didn't say whether it would lay off workers or eliminate jobs through attrition to save money. — AP
Stockpiles rise in April
U.S. companies increased their stockpiles at a faster rate in April, despite only modest growth in sales. The Commerce Department said that business stockpiles grew 0.4 percent in April, slightly better than March's pace. Sales were up a modest 0.2 percent in April, matching the March increase. It would take roughly five weeks to exhaust existing stockpiles at the April sales pace. That's considered a healthy time frame and suggests businesses will keep restocking to meet demand, which should help boost growth in the April-June quarter. — AP
Money fund rates unchanged
The average seven-day yield on taxable money-market funds was 0.03 percent this week, unchanged from last week, according to iMoneyNet Inc. A seven-day yield is an annual yield that is based on the preceding seven days' level of income by the fund. The average yield on tax-free funds was 0.01 percent this week, unchanged from last week. — Rhonda Dickey
